Since when is it a good idea to give away your car for a fourth of its worth and then have to repay twice the amount of the full worth of your car, just so you can keep it? How does this make sense? Incredibly enough, this is exactly the principle logbook loans are based on, all strengthened by an ancient law regarding the bill of sales, which incidentally may also cost you more than your car to get rid of. Why would anyone do this to themselves, because this comes as close to going to the neighbourhood’s hoodlum asking for a loan, as you can get. Did you really think this through, considered the consequences, alternatives, impact this may have?
Solutions you should consider:
- Sell the car
- Get a regular loan, any other loan you can get
- Consolidate your debts
- Borrow money from a friend or relative
- Sell anything else of value you have
See, if the odds are against you paying back this loan and losing your car anyway, why not considering selling the car and keeping the money to yourself? You can even purchase a smaller, cheaper, older car and still be on wheels, but gaining the money you otherwise would pay back for months even years. There is no reason for you to even consider a logbook loan, unless you need all the money by tomorrow.
Still, going to a bank and trying to get a regular loan, where you put your car up as collateral may be also a good solution. A bank does not strangle you with 500% APR, making it mathematically impossible for you to even expect to pay back a loan. A bank would probably even give you more money than a logbook loan place. If you have bad credit, though, you are probably out of luck. A bank will pass, no matter what, if they receive a bad credit report – unless you own a Lamborghini.
If you have bad credit, then consolidating your debt with a loan that covers all the outstanding monies you owe might be the right step to take. You may even eke out a bit of cash out of that deal as well, depending on where you get lucky. It may be necessary to either get the help of a professional debt consolidation place for this to work, or a guarantor to co-sign. There are also places funded by the government and by charity organisations, their plus being that they will not charge you for the service.
If you considered getting a logbook loan just so you do not have to go to your mother or uncle and beg for some cash, then swallow your pride and rather go there. If all fails, mind you if all fails, you still can get a logbook loan. Rather than embarrassing yourself, you also may consider selling the second LCD TV set and the iPhone 6 to cover your immediate need. You would be surprised how many people did just the opposite, got a logbook loan in order to upgrade their phone.